What is Binance Coin NZ? New Zealand’s Crypto Guide (2025)

Binance Coin (BNB) is one of the most popular cryptocurrencies in the world, often referred to as the ‘fuel’ of the Binance ecosystem

. With a large market capitalization and active trading volume, BNB has emerged as a significant player in the crypto space.

This comprehensive guide will provide you with a detailed overview of Binance Coin, including its history, defining features, such as its utility as a means of payment on the Binance exchange, and its various use cases within the broader blockchain ecosystem.

Binance Coin, also known as BNB, is a cryptocurrency that was created in July 2017 by the Binance cryptocurrency exchange

. As the largest cryptocurrency exchange in the world, Binance has a significant presence in New Zealand and other countries around the globe.

Binance Coin is primarily used as a utility token within the Binance ecosystem, offering users various benefits such as reduced trading fees and increased withdrawal limits.

Binance Coin was create by Changpeng Zhao

and initially launched through an Initial Coin Offering (ICO) in July 2017, with a total supply of 200 million tokens. During the ICO, 100 million tokens were sold to early investors at a price of $0.15 USD per token.

The remaining 100 million tokens were distributed to the Binance team and reserved for future use. The ICO for BNB was considered a success, as it sold out in just a few days.

In 2019, Binance launched Binance Chain, which is its own blockchain platform. BNB was migrated from the Ethereum

to the Binance Chain, becoming the native token of the Binance ecosystem. This migration improved the speed and security of transactions.

As of 2023, Binance Coin remains one of the largest and most popular cryptocurrencies in the world, with a market capitalization in the billions of dollars ($86,121,412,625.46 NZD).

Binance Smart Chain

Binance Smart Chain (BSC) is a blockchain platform that was launched by Binance in 2020. It was designed to offer an alternative to the Ethereum network, which was facing issues of high congestion and transaction fees during that time.

Binance Smart Chain is designed to be compatible with Ethereum, meaning that developers can use the same tools and programming languages to build decentralized applications (dApps) on both platforms. However, BSC is also faster and cheaper to use than Ethereum, making it an attractive option for developers and kiwis.

One of the key features of Binance Smart Chain is its support for smart contracts, which are self-executing programs that can automate various processes and transactions on the blockchain. This allows developers to create complex dApps that can handle a wide range of use cases, from finance and gaming to social media and NFTs.

Binance Coin Burning

Binance Coin burning is a process in which a certain number of Binance Coins are permanently removed from circulation, reducing the total supply of the cryptocurrency.

This process is typically carried out by Binance. The burning is carried out regularly as a way to maintain the value of the cryptocurrency and prevent inflation.

Every quarter, Binance burns a portion of its Binance Coin holdings, equivalent to 20% of its profits for that quarter. The process continues until a total of 100 million Binance Coins, which is half of the initial supply of the cryptocurrency, are burned.

Binance Coin (BNB) has a range of use cases within the cryptocurrency ecosystem. Some of the most notable use cases include:

• Trading fee discounts: Binance Coin is primarily used on the Binance exchange to offer users discounts on trading fees. By holding Binance Coin in their account, users can receive up to a 25% discount on their trading fees.
• Staking: BNB can also be used for staking on the Binance Smart Chain. Kiwis can stake their Binance Coin to earn rewards and participate in the governance of the network.
• Decentralized applications (dApps): Binance Coin is used as a means of exchange and governance token for certain decentralized applications on the Binance Smart Chain.
• Payment method: Some merchants and businesses accept Binance Coin as a form of payment, providing users with an additional way to use their cryptocurrency.

Choosing the right wallet is a critical step in your crypto journey. Here’s a look at some of the best options for storing BNB in New Zealand:

Best for Security: Trezor Model T

• Purchase Cost: Approximately $219 USD
• Storage Type: Cold Storage (Hardware Wallet)

Why I Recommend It: The Trezor Model T is my top pick for security. Its touch screen interface provides an intuitive user experience, while its robust security features, including offline private key storage and a physical security key, offer unparalleled protection against online threats. For serious investors, the peace of mind a hardware wallet provides is invaluable.

Pros:

• Versatile Crypto Support: Supports a wide range of cryptocurrencies, including BNB.
• Intuitive Touch Screen: Makes navigating and confirming transactions straightforward.
• Top-Tier Security: Offline key storage provides maximum protection against malware and phishing attacks.

Cons:

• Higher Cost: The initial investment is higher than software wallets.
• Learning Curve: May be less intuitive for absolute beginners compared to simpler software wallets.

Best for Mobile: Trust Wallet

• Cost: Free
• Storage Type: Hot Wallet (Mobile)

Why I Recommend It: Trust Wallet, officially supported by Binance, is an excellent choice for those who prioritize convenience and mobile access. It offers a user-friendly interface, seamless integration with the BNB Chain, and a built-in dApp browser, making it easy to interact with the DeFi ecosystem on the go.

Pros:

• User-Friendly: Simple setup and intuitive design.
• BNB Chain Integration: Seamlessly connect to dApps on the BNB Smart Chain.
• Multi-Asset Support: Store a wide variety of cryptocurrencies.

Cons:

• Hot Wallet Risks: As a software wallet, it is more vulnerable to online threats than a hardware wallet.
• Reliant on Mobile Device Security: The security of your funds is tied to the security of your mobile device.

BNB's value is intrinsically linked to the success and adoption of the Binance ecosystem. Its strong utility within this ecosystem, coupled with the deflationary pressure from coin burns, presents a compelling case for its long-term potential. The BNB Chain's low fees and high transaction speeds have also made it a popular choice for developers and users, further driving demand for BNB.

However, it's important to consider the risks. BNB's centralized nature, with its close ties to the Binance exchange, means that any regulatory challenges or issues faced by Binance could significantly impact BNB's price. The cryptocurrency market is also notoriously volatile, and BNB is no exception.